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We have statements from American Airlines and US Airways in response to the lawsuit filed Tuesday in San Francisco that seeks to block their merger:

“This lawsuit is completely without merit. The combination of American and US Airways brings together two highly complementary networks, making the New American a better and stronger competitor. Our combined network will be better positioned to get our customers to the places they want to travel and at the times they want to travel. This … [visit site to read more]

A US Airways plane is parked between two American planes, one with the new logo (far left) and one with the existing logo (far right) at Dallas-Fort Worth International Airport. (Tom Fox/Dallas Morning News/MCT)

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Southwest Airlines Co. has sued the Texas Comptroller of Public Accounts and the Texas Attorney General for more than $1.3 million in taxes on equipment it bought for use at airports statewide.

The Dallas-based airline argued because the equipment was used at airports, which are tax-exempt entities, it should be exempt from paying sales and use tax on those items, according to the lawsuit filed recently in Travis County Court.

Southwest seeks a refund of more than $1.3 million in sales … [visit site to read more]

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AMR Corp., the parent of American Airlines, posted a net profit in May and chief executive Tom Horton said he expects the carrier to post a profitable second quarter, which would be its first since 2007.

The Fort Worth-based company posted $65 million net profit for May, compared with a $132 million net loss for the same month last year.

Excluding $59 million in bankruptcy reorganization charges and other items, AMR would have posted a monthly operating profit of $124 million. The $26 … [visit site to read more]

American Airlines on Wednesday announced a cash tender offer for more than $1.2 billion in outstanding debt.

The Fort Worth-based carrier said it plans to repay two separate pass through certificates issued in 2009 and 2011 and secured notes issued in 2009. The tender offers expire at 4 p.m. CT on Aug. 2.

The tender offer is for the airline’s 8.625 percent Class A pass through certificates (2011-2 certificates), 10.375 percent Class A pass through certificates (2009-1 certificates) and … [visit site to read more]

U.S. Senator Kay Hagan (D-N.C.) said today that US Airways chief executive Doug Parker assured her in a letter that Charlotte Douglas International Airport would remain a hub after the airline’s merger with American Airlines.

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In its report this week on the US Airways-American Airlines merger, the Government Accountability Office concluded that the “Southwest Effect” isn’t what it used to be.

The Southwest Effect came from a 1993 U.S. Department of Transportation study that found that air fares would decline when Southwest Airlines entered the market. The study came out around the time that Southwest entered the Baltimore market, wrecking other carriers’ fare structure with its own cheap prices.